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NUCLEAR SUPPLIERS GROUP (NSG)

Published: 12th Jul, 2019

NUCLEAR SUPPLIERS GROUP (NSG)

What is Nuclear Suppliers Group?

NSG is a group of nuclear supplier countries that frames and implements agreed rules for exporting nuclear equipment, with a view to controlling the spread of nuclear weapons

NSG was established in 1974 in the background of the Pokhran I peaceful nuclear explosion conducted by India in 1974. 

Task: It aim to ensure that nuclear trade for peaceful purposes does not contribute to the proliferation of nuclear weapons or other nuclear explosive devices, while not hindering international trade and cooperation in the nuclear field. 

It facilitate the development of peaceful nuclear trade by providing the means whereby obligations to facilitate peaceful nuclear cooperation can be implemented in a manner consistent with international nuclear non-proliferation norms. 

Membership: 48 supplier states

Factors taken into account for membership include the following:

•  The ability to supply items (including items in transit) covered by the annexes to Parts 1 and 2 of the NSG Guidelines;

•  Adherence to the Guidelines and action in accordance with them;

•  Enforcement of a legally based domestic export control system which gives effect to the commitment to act in accordance with the Guidelines;

•  Full compliance with the obligations of one or more of the following: the Treaty on the Non-Proliferation of Nuclear Weapons (NPT), the Treaties of Pelindaba, Rarotonga, Tlatelolco, Bangkok, or an equivalent international nuclear nonproliferation agreement; and

•  Support of international efforts towards nonproliferation of weapons of mass destruction and of their delivery vehicles.

India’s Quest for NSG Membership

•  Since 2008, India has been trying to join the group.

•  India submitted its membership application to the NSG in May 2016, a month before the Seoul plenary of the Group. However at the Seoul plenary group, India’s membership was blocked by China

Why India wants to become member of NSG? 

India is keen to become a member of the NSG (and other export control regimes such as the Wassenaar Agreement and Australia Group) due to various reasons:

• Expansion of nuclear power generation: It will significantly expand its clean and green nuclear energy programme.

• Short-comings in NSG waiver:

1.  Although the 2008 NSG waiver allows India to engage in civilian nuclear trade with other countries, but still this allows India to enter into an agreement with each country separately. It’s a piece-meal approach. 

2.  Membership of the NSG will provide a legal foundation for India's nuclear regime and thus greater confidence for those countries investing in nuclear power projects in India. 

• Nuclear export: 

1. It will enable India’s entry in the export market in the coming years.

2. India would like to make effective commercial use of its nuclear expertise in building pressurised heavy water reactors (PHWRs) of 220 MW or 540 MW capacities as well as its possible role as a supplier of special steels, large size forgings, control instruments and other nuclear components and services.

3. Indigenous development of nuclear reactors got further boost with the Indian government’s recent decision to set up 10 indigenous PHWRs of 700 MWe capacities each. This would strengthen India’s credibility as a manufacturer and potential supplier of nuclear reactors that are safe and cost-effective.

• A rule-creating nation instead of rule-adhering: Membership of NSG will move India into the category of international rule-creating nations rather than stay in the ranks of rule-adhering nations.

• International prestige: With its expanding international prestige and profile, India's membership of NSG is of vital significance. 

• Integrating into the global export control regimes: Joining NSG is a part of larger goal of getting admission into the four global export control regimes – NSG, Missile Technology Control Regime (MTCR), Wassenaar Arrangement (WA) and Australia Group (AG). India is already a member of the MTCR.

What are the roadblocks in India’s membership to NSG? 

Since all decisions at NSG (including on membership) are taken by consensus, any country, small or big, can stand in the way of a consensus.

 Now majority of the countries support India’s membership (In June 2016, India became a Member of the Missile Technology Control Regime (MTCR). All 34 members of MTCR are members of the NSG. Thus India is assured of support of these 34 members in its quest for NSG membership. China is not a member of MTCR).

But China and China backed nations have openly opposed to India’s membership on following grounds:

• Non-signatory to NPT: India is not eligible to become a member of the NSG as it is not a member of the nuclear non-proliferation treaty (NPT), adherence to latter is necessary for membership in the former.

• Norm-based entry: China has also averred that for non-NPT members some definite criteria should be evolved rather than granting country specific waivers.  No single country waiver should be granted to India as was done in 2008. 

• Linking India’s membership with Pakistan: At other times, China has stated that Pakistan also has similar credentials to join the NSG; and that if India is admitted, Pakistan should also be admitted simultaneously. 

• Will fuel nuclear arms race in South Asia: If only India were to be admitted, it would disturb the nuclear-arms balance in South Asia as India will engage in a massive nuclear weaponisation programme. 

What is India’s response to Chinese apprehensions? 

According to India, most of the questions raised by China against India’s membership have little validity.

• Grossi process:

1. In December 2016, Rafael Mariano Grossi, the former NSG Chair, circulated a new draft formula among Nuclear Suppliers Group member states. 

2. Thus draft formula proposes "nine general commitments" that non-NPT countries "would need to make" in order to receive the "fullest" atomic trading privileges.

3.  According to analysts, India already fulfils all these nine criteria for becoming a NSG member.

• NPT membership is not mandatory: According to the guidelines adopted in 2001 at Aspen, membership of NPT is not a pre-condition for becoming a NSG member. It is only a guiding principle to which consideration needs to be given. 

• Impeccable track record:  If the NSG granted waiver to India in 2008 on the basis of its past performance, then it should have no objection in admitting India as a member because of India’s impeccable track-record in observing the provisions of the NPT and NSG, even though it has not been a member of either any of them.

• India’s view on Pakistan’s membership to NSG: Pakistan’s credentials for NSG membership are highly flawed and inadequate. Pakistan has a blemished and flawed proliferation record as it has engaged in illicit supply of nuclear technology and materials to Iran, Libya and North Korea. 

• On nuclear arms race: Since 2008, as per its commitment, India has separated its civilian and military nuclear programmes, and put the civilian part under International Atomic Energy Agency safeguards. 

• India’s view on criteria-based membership: India maintains that rather than evolving criteria, its performance should be the basis of its track record.

Conclusion:

India has in recent times emerged as major global player in all respects and the global foras’ must recognize the importance of this. China also must see it as an important confidence building step. If it does not block India’s membership it can have huge positive effects on the relationship between the two countries. India on its part must be ready for some hard and smart diplomatic efforts with China on the issue.

 

What is MTCR?

• It is an informal and voluntary partnership established in 1987 among 35 countries to prevent the proliferation of ‘missile’ and ‘unmanned aerial vehicle’ technology capable of carrying above 500 kg payload for more than 300 km.

• In simple language, it aims to “prevent proliferation of missile/UAVs capable of carrying weapons of mass destruction by putting curbs on their export.”

• In 1992, the MTCR’s original focus on missiles for nuclear weapons delivery was extended to a focus on the proliferation of missiles for the delivery of all types of weapons of mass destruction (WMD), i.e., nuclear, chemical and biological weapons. Such proliferation has been identified as a threat to international peace and security. One way to counter this threat is to maintain vigilance over the transfer of missile equipment, material, and related technologies usable for systems capable of delivering WMD.

Members 

• The MTCR has 35 members with India being the latest member.

 

• China is not a member of MTCR, although it put in its application in 2004. It s because several member nations have concerns about China’s dubious proliferation record in supplying missile technology to countries like North Korea, Pakistan and Iran.

How does the MTCR achieve its objectives?

Export Controls The Regime rests on adherence to common export policy (the Guidelines) applied to an integral common list of items (the MTCR Equipment, Software, and Technology Annex.)

Meetings MTCR Partners regularly exchange information about relevant missile non-proliferation issues in the context of the Regime’s overall aims.

Dialogue and Outreach The MTCR Chair and MTCR Partners undertake outreach activities to non-Partners in order to keep them informed about the group’s activities and to provide practical assistance regarding efforts to prevent the proliferation of WMD delivery systems.

Critical Analysis

Achievements: MTCR has been successful in helping to slow or stop several ballistic missile programs.

Limitations: Countries within the MTCR have been known to violate the rules clandestinely. China, North Korea, Israel, Iran and Pakistan continue to advance their missile programs which have deployed medium-range ballistic missiles. China and Israel have even deployed ICBMs.

HAGUE CODE OF CONDUCT (HCOC) / INTERNATIONAL CODE OF CONDUCT AGAINST BALLISTIC MISSILE PROLIFERATION (ICOC)

• MTCR is supplemented by the International Code of Conduct against Ballistic Missile Proliferation (ICOC)

Established in: 2002.

Objective: 

1. To prevent the proliferation of ballistic missiles.

2. HCOC does not ban ballistic missiles, but it does call for restraint in their production, testing, and export.

• It thus works parallel to the MTCR with less specific restrictions but with a greater membership (over 110).

• India joined it in June 2016.

Significance of India’s MTCR membership

India became its member in June, 2016 with the consensus of other nations. India has been allowed to retain its ballistic missiles able to deliver a 500 kg payload at least 300 km.

Membership of MTCR is significant to India due to various reasons:

Boost to Indian defence:

1. MTCR membership will enable India to buy high-end missile technology and also enhance its joint ventures with Russia.

2. By joining MTCR, the chances of US exporting Category 1 UAVs, Reaper and Global Hawk to India have increased.

India as arms exporter:

1. India will be able to sell BrahMos, a development that would make India a significant arms exporter for the first time.

2. India had for long eyed Israel's Arrow II theatre missile defence interceptor to develop an indigenous ballistic missile system but couldn't do so because of MTCR's norms. Now, with a ticket to the MTCR in its possession, India will be able to defend itself against Chinese and Pakistani missiles. 

3. India will be able to buy surveillance drones from abroad like the American predator drones. The US may also provide UAVs, Reaper and Global Hawk that are used in counter-terrorism efforts.

Contribution to global proliferation:

o MTCR membership has made India a partner in the international struggle against proliferation of WMD missile technology. 

A step forward for NSG:

1. This certifies that India has evolved a strong legal, regulatory and enforcement infrastructure to regulate export of missiles and missile technology.

2. All 34 members of MTCR are members of the NSG. Thus India is assured of support of these 34 members in its quest for NSG membership. China is not a member of MTCR).

Conclusion 

India becoming a member of MTCR is expected to pave the way for increased defence trade and technology transfer. India's own technology which will be developed or made under the flagship programme of 'Made in India' which will see free movement out of the country and may boost the programme in return.

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